Whale Strikes Again! BitMine Splurges $130 Million to Buy the Dip in Ethereum—Is This the Beginning of ETH's Surge Toward $10,000?

Crypto whale BitMine has made another move. According to Lookonchain monitoring, two new wallets suspected to be related to this institution received a total of 41,946 ETH, worth about $130 million, within 5 hours on December 5.

This is not BitMine’s only recent action. Reports indicate that it now controls about 3% of Ethereum’s total supply. The institution’s ongoing accumulation is resonating with Ethereum network’s Fusaka upgrade, shifting macroeconomic expectations, and positive technical signals.

01 Institutional Moves

Market monitoring data reveals a silent but large-scale capital transfer. On December 5, blockchain data showed two large transfers—one from FalconX and one from BitGo—moving a total of 41,946 ETH into two brand new wallet addresses.

This transaction, valued at about $130 million, was quickly linked by the community and observers to BitMine, a giant in the crypto asset treasury field. This is just the latest step in its public “accelerated accumulation of Ethereum” strategy.

Previously, BitMine’s public information showed its ETH holdings had exceeded 3% of the total supply, about 3.7 million ETH, with a goal to hold 5% of the supply. Chairman Tom Lee stated that the company has increased its weekly ETH purchases by 39%.

02 Market Impact

Institutional buying is having a direct impact on the market. On one hand, BitMine’s own stock price (BMNR) has risen about 15% in December, showing investor confidence in its aggressive positioning strategy.

On the other hand, the deeper impact is on Ethereum’s underlying supply and demand. Data shows that in the past 30 days, net ETH outflows from exchanges reached $1.6 billion, further tightening liquidity.

On November 23, a record $3.1 billion worth of ETH left exchanges in a single day. Currently, the number of withdrawal addresses exceeds deposit addresses by 40%, indicating large-scale asset transfers from trading platforms to private or custodial wallets.

03 Supply Squeeze

The ongoing and large-scale accumulation is creating a classic “supply squeeze” scenario. Analysis points out that record staking deposits, combined with continuous absorption of circulating ETH by whales like BitMine, are shrinking market depth.

This means that “liquidity sell orders” available for immediate sale are rapidly decreasing. In such a structure, any new, medium-sized buying demand could trigger rapid and sharp price increases due to the lack of sufficient selling liquidity.

This is not just holding positions, but a proactive, strategic accumulation. It changes the market’s microstructure and sets the stage for a potential “price breakout.”

04 Price Predictions

Against the backdrop of a supply squeeze narrative, multiple analysis firms have issued convergent optimistic short-term forecasts for ETH. According to analyses published on December 5, market consensus points to a clear short-term target.

Blockchain news portal Blockchain.News set a short-term target of $3,400 and believes the mid-term could reach $3,850.

Brave New Coin’s analysis also points out that if ETH can hold the key support at $3,050, it could test the $3,400 to $3,500 resistance zone.

A more precise forecast from Changelly shows ETH may peak around $3,391 on December 16, followed by consolidation before the end of the year.

05 Technical Analysis

As of December 5, ETH was trading at about $3,162. From a technical perspective, the market appears complex but tilted positive.

ETH is currently trading above key short-term moving averages (such as SMA 7 and SMA 20), which provide fundamental support. The MACD histogram is positive, showing bullish momentum is building.

The relative strength index (RSI) is at a neutral 51.77, meaning there is ample room for price to rise before entering overbought territory. In addition, the Bollinger Bands show the price is testing the upper band, which typically signals a potential breakout attempt.

06 Macro Backdrop

Current institutional behavior is not an isolated event; it synergizes with an improving macro environment and Ethereum’s own developments.

First, the probability of a Fed rate cut in December has been heavily priced in by the market. According to the CME FedWatch tool, the probability is 87%, and on Polymarket, it’s as high as 94%. This typically benefits risk assets like Ethereum.

Second, the Ethereum network just completed its second major annual upgrade—“Fusaka.” This upgrade improved Layer 2 settlement and reduced node costs, providing fundamental support for the network. Tom Lee also explicitly linked BitMine’s accelerated accumulation to this upgrade.

07 Investment Perspective

For ordinary investors, whale actions and convergent analysis predictions provide an important market indicator. The current price range (about $3,150 - $3,200) is seen as a potential entry region.

A prudent strategy is to build positions in batches rather than investing all at once. Consider establishing part of your position at current prices and reserving the rest for a potential pullback to the $3,040 - $3,080 support region.

The key risk control level is set below $2,985 (SMA 20). If the price falls below this level, the short-term bullish thesis could fail. The upside target is anchored at $3,400 and higher resistance zones.

Divergence Ahead

Facing Ethereum’s complex market landscape, both bullish and cautious voices coexist.

Bullish views focus on the structural supply shortage caused by institutional accumulation and a clear technical breakout path. Cautious views believe all optimistic expectations are premised on the price holding the key $3,050 support.

If that level is breached, market sentiment may reverse, leading to a test of lower support areas. Ultimately, whether Ethereum moves to higher targets or consolidates again depends on whether actual buying power can continue to outweigh selling pressure on rallies.

The market’s balance is waiting for new weight to tip the scale.